Nowhere To Go
Career College Central summary:
Up to 44 percent of students at for-profit colleges could lose access to federal financial aid under proposed “gainful employment” regulations, according to a new report from the sector’s trade group. And many of those students lack other educational options in their academic field or geographical area. “The impact will be very large” if gainful employment is enacted, the report said. “And the alternatives for the students impacted will be very limited.”
The Association of Private Sector Colleges and Universities (APSCU) commissioned the study. Jonathan Guryan, an economist at Northwestern University, and Matthew Thompson of Charles River Associates, a consulting firm, are its authors. Guryan and Thompson argue in the report that the proposed rules fail to account for the relative lack of wealth and academic preparation of the students for-profits serve. The regulations also do not factor in the economy’s ups and downs.
Likewise, the report said the department and White House are wrong to focus the metrics for their for-profit crackdown on the earnings and debt of students in their first few years out of college, which the report said tell an incomplete story about the value of the credentials students earn. The 103-document is part of a final blitz of lobbying by both sides of the for-profit debate. The U.S. Department of Education released a draft version of the rules in March. The period for weighing in with public comments on the proposed language closed Tuesday.
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